Consumers’ Counsel Message

The year 2007 ushered in many changes in the regulatory climate for electric, natural gas, telephone and water utilities. The OCC was both a driver of new policy directions as well as a respondent to initiatives that will impact the rates and quality of service for Ohio’s 4.5 million residential households. In many ways, 2007 was the harbinger of changes in the wind that will continue through 2008.

In the electric arena, legislation (Senate Bill 221) was introduced to address the question of whether electric rates would be established by the Public Utilities Commission of Ohio or by a competitive market. Recognizing the vast differences in electric rates around the state, the OCC advocated the adoption of a “least cost” approach where whichever measure – a quasi-regulated rate or a competitively bid market rate – produced the lowest rate for customers.

Within the legislation, the OCC supported measures to increase energy efficiency and renewable energy to meet Ohio’s future energy needs. Energy efficiency is currently the least costly option available to consumers as compared to adding new generation. When considering adding new generation, renewable energy has the advantages of not having any fuel costs and having minimal environmental risk associated with it. These advantages will make renewable energy increasingly attractive over time when compared to traditional fossil fuel or nuclear power plants, especially given the imminence of national mandatory greenhouse gas legislation.

The OCC shared our recommendations with Governor Ted Strickland, lawmakers, the media and consumer organizations. Heading into 2008, the OCC’s efforts continued as the House of Representatives considered changes to the Senate’s legislation. A Web page developed by the OCC at www.pickocc.org/energypolicy was used to make its testimony and other materials available to consumers electronically from one central location.

While many Capitol Square observers followed the energy policy developments, the OCC addressed many other important utility issues in 2007. OCC fought hard in many gas, electric, telephone and water proceedings to keep rates down so that these essential services are affordable for all customers. This advocacy extended from rate cases to gas cost recovery cases and periodic increases under the rate stabilization cases. OCC staff provided expert testimony while our attorneys argued the consumer cause.

Meanwhile, in a success for the OCC and others, a decision by the Public Utilities Commission of Ohio (PUCO) helped remove some obstacles that have prevented more Ohio residents and businesses from generating renewable electricity and receiving pricing options based on when they use their power.

In the natural gas industry, safety and customer rates have been issues as some natural gas utilities sought to recover costs for fixing certain types of “risers” on customers’ properties that are prone to leaks. A natural gas riser is the vertical portion of the service line that connects the primary distribution pipeline to the customer’s meter.

The OCC also advocated for measures that could save customers money over the short- and long-run, such as negotiating for energy efficiency programs and putting in place programs that would require natural gas supply service to be competitively bid. A similar program saved the typical Dominion East Ohio customer approximately $100 on their natural gas bill last year.

The OCC stood up for many telephone customers when AT&T, Cincinnati Bell and Embarq applied for alternative regulation that would allow for basic service rate increases in certain of their telephone exchanges. The OCC argued that there must be real competitive or alternative choices for consumers before the PUCO can reduce regulation of basic service rates. When alternative regulation was granted despite OCC’s concerns, the OCC appealed the decisions to the Supreme Court of Ohio, where oral arguments were held in December regarding protection of basic service rates for customers of AT&T and Cincinnati Bell.

Water rates and service quality remained at the forefront as Aqua Ohio and Ohio American Water sought to increase customers’ monthly bills. The OCC was proactive in working with Ohio American Water’s consumers on water quality issues, ensuring that the objective of improvements in water quality was part of the case resolution.

I would like to take this opportunity to thank Governor Ted Strickland and the Ohio General Assembly for restoring the OCC’s complaint-handling authority. After two years of not being permitted to handle consumers’ complaints due to changes in the state’s last budget law, the OCC once again is working to resolve these utility issues and bring more assistance and benefits to consumers through our hotline, 1-877-PICKOCC (1-877-742-5622). The OCC customer service staff is pleased to be once again working with individual consumers to help resolve their complaints and concerns. We strive to assist them in receiving better utility services.

I also want to thank the staff of the OCC. As the leader of an organization with a small staff and a big responsibility, I am fortunate to have such dedicated and experienced professionals to take on the difficult task of advocating on behalf of consumers on multiple, complex issues in a changing utility and regulatory environment. And, finally, I extend my appreciation and gratitude to the members of the OCC’s Governing Board, who have been dedicated stewards for Ohio’s residential consumers and who have supported the work of the agency.

Many challenges await us in 2008. Along with the staff of the OCC, I look forward to the new opportunities for consumer advocacy as we continue to protect Ohio’s residential utility consumers and build on our agency’s record of accomplishments.

Consumers' Counsel

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